As trained professionals, debt counsellors specialise in assisting individuals struggling with over-indebtedness. Debt counselling is a form of debt relief available in South Africa. It is provided for in the National Credit Act 34 of 2005. Debt counselling is an official legal procedure. It recognises over-indebted consumers. Through this procedure, debt counsellors can arrange a new payment plan on behalf of the consumer. They can also get a court order to confirm it. Debt counsellors must register with the National Credit Regulator and have an NCRDC number. This is mandated by the National Credit Act.

In short, debt counsellors negotiate with your credit providers for lower interest rates and reduced monthly instalments. This will make your debt more manageable.

Who Needs Debt Counsellors?

Anyone who is over-indebted should consider debt counselling. Over-indebtedness is when a consumer cannot repay debts promptly as agreed upon with credit providers. Some indicators of over-indebtedness include:

You can apply for debt counselling if you are struggling to keep up with your monthly debt. Contact debt counsellors registered with the National Credit Regulator for debt counselling services.

The Pros and Cons of Working with Debt Counsellors

Debt counselling offers several benefits.

The only minor drawbacks of the process are that you cannot apply for more credit while receiving help from debt counsellors. Also, smaller monthly payments may extend the duration of your debt repayment.

What Are Consumers’ Rights and Obligations?

As a consumer, you have certain rights when it comes to debt counselling, including:

1. The right to apply for debt counselling

2. The right to request and receive reasons if your application for debt counselling is rejected

3. The right to receive written disclosure of applicable fees before applying for debt counselling

4. The right to full disclosure of the debt counselling process before applying for debt counselling

5. The right to receive monthly distribution statements from your debt counsellor and Payment Distribution Agency

You also have several responsibilities, including:

1. Ensuring that you provide accurate and complete financial information during the application process

2. Making timely and regular repayments as agreed upon with your debt counsellor

3. Monitoring and verifying monthly payments made to the Payment Distribution Agency

4. Ensuring that you understand the entire process, including any relevant fees and potential consequences

For Relief from Over-indebtedness, Talk to National Debt Counsellors

Reduce your payments to an amount you can afford. Receive instant protection for yourself and your assets. National Debt Counsellors helps thousands of South Africans every month to get back their financial freedom and become debt free. Contact us today for a free, no-obligation assessment of your financial situation. Our professionals can give you the tools and support to handle your debt in the best possible manner.